17 Aug 2020
Moving out of home can be very exciting – but it can also come with some surprising financial snags, from the cost of removalists (if you're using them) to sudden monetary requests from your new landlord. And if you're moving out on a budget, things can be even more stressful. Like many things in life, it pays to be prepared when moving out of home for the first time – so here's our guide on how to budget for moving out of home to help avoid any surprises.
The costs associated with moving out are usually split into two types: once-off costs and ongoing costs. Once-off costs are among your highest priority when you're moving out of home, especially if you're moving out on a budget. These costs can be substantial, and they can all fall within a small timeframe. These one-off costs include:
Once you're in the clear from once-off costs, the next thing you'll need to consider are ongoing costs. These will likely be a part of your overall monthly/fortnightly/weekly budget (for example, rent), but should also be a part of your budget for moving out of home, ensuring you are comfortable in the long-term. These ongoing costs can be things such as:
Determining these costs will help you better budget for your move.
A little bit of forward planning can make your first move out of home a lot less stressful. Here are some things that can help ease financial worries, helping you to enjoy your new time out of home.
A savings account is your best bet when it comes to budgeting for moving out of home, or for anything important in life really. It's always a good idea to have a bit of money set aside. Open an account with your preferred banking institution, and set yourself a savings goal.
You don't want to move out and find that you're funnelling your money into living expenses, so it's important to sit down and define a budget for yourself. Factoring in savings within your monthly budget to help you figure out how much you can save.
Keep a checklist of things you need to purchase and pay for before you move. This will give you a better understanding of how much money you'll need to set aside for the big day.
Start setting aside a small amount of money each week for your emergency fund. This can be used for urgent matters, such as car repairs or unexpected medical bills, and will prevent you from dipping into your savings.
If you're moving out on a budget, it's good to have all things settled before you go. Don't try and rush out and rent an apartment if you know you're not in a position to do so – it could lead to debt and other problems.
Need some more hints and tips for staying financially savvy? Check out our blog for more.